Annual report pursuant to section 13 and 15(d)

NOTE 14 - LINE OF CREDIT

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NOTE 14 - LINE OF CREDIT
12 Months Ended
Dec. 31, 2011
Line Of Credit Disclosure Textblock
NOTE 14 – LINE OF CREDIT

In October 2011 the Company negotiated a line of credit from a bank. The agreement included a borrowing base calculation tied to accounts receivable with a maximum availability of $750,000. As of December 31, 2011, the availability under this line was approximately $533,000 based upon eligible collateral at December 31, 2010.Interest on outstanding balances is payable daily at an interest rate that is two and three quarters percentage points (2.75%) above the Prime Rate.  The Company’s interest rate was 6% as of December 31, 2011.   The line is collateralized by substantially all of the assets of the Company and is guaranteed by the Company’s CEO.  The credit facility required the Company to pay a monitoring fee of 0.315% of eligible collateral to be paid monthly. An annual facility fee equal to one percent (1%) of the Maximum Credit is assessed upon the initial funding, annually thereafter. The term of the agreement is for three years and expires in October 2014. As of December 31, 2011 there was no outstanding balance open under this agreement.